Beware of dealing with OTA’s that move abroad

Would you be happy to deal with a travel company, if you knew that by doing so you are helping them avoid paying tax.

Just like Starbucks, Amazon and Google who are facing the wrath of the British public over tax issues.

Several UK bed banks (accommodation only suppliers) and more than a few online travel agents OTA’s are looking to move to non-EU countries to avoid paying Tour Operators Margin Scheme (Toms) VAT in the wake of the 7 Million Med hotels vat ruling.

Dubai and Switzerland described as “popular choices”, following last week’s ruling which confirmed Medhotels as a principal, and therefore liable to a £7 million VAT bill.

Our argument is simple – If businesses decide to move offshore then the government should make sure that if they are marketing in the UK, and selling to UK businesses and consumers, they pay tax in the UK.

We will name and shame, those bed banks and online travel agents who, deliberately move abroad to avoid paying tax. Thus creating a non level playing field for those companies that do pay the TOMS margin Vat in the UK.

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